ABOUT CHARITY INVESTING

There are several reasons you might want to invest your charity's money:

• to generate a sustainable, reliable income to support your charity
• to protect your funds against the impact of inflation
• to manage your longer term reserves in accordance with Charity Commission guidance (see Charity Commission Guidance Note CC14)

Discover the other reasons for investing.

A way to pool your money with others and invest in a wider range of investments than you could easily achieve alone. The Fund is managed on your behalf by a Fund Manager. Types of investment fund include CIFs, Unit Trusts, OEICs, Investment Trusts and ETFs. Different funds will invest in different types and mixtures of assets.

What do these terms mean?

Read our guide to getting started with investing.

We can't make those decisions for you, but we've put together a list of factors you may want to consider. If you need guidance, talk to an independent financial advisor before investing. When speaking to an advisor, make sure they have experience in advising charities – and ask for references.

Read our guide to getting started with investing.

If your charity has investments, you need a written investment policy that sets out your charity's goals and investment objectives - along with a clear strategy for achieving them.

Find out how to write a policy that works for you.

Share gifting can be a significant source of extra income for your charity. And for donors, it's one of the most tax-efficient ways to give. If you receive a share gift, you can either:

• transfer the shares or funds straight into the CAF Investment Account or
• do an exchange of letters which would allow the donor to sell the shares or fund on your behalf and pay you the proceeds

Different investments suit different investors; an independent financial advisor can assess your individual circumstances, give you an overview of your options, recommend the best route and provide ongoing support. Find out more about investment advice for charities.

These are a range of funds designed specifically for charities. You’ll be investing through Fund Managers who understand the market and the needs of charities.

One type of charity-specific fund is the Common Investment Fund (CIF). These are a type of pooled investment specifically set up for UK-based charities. As charities themselves, CIFs allow charities to invest together alongside other organisations that share similar risk profiles and income needs.

What are charity-specific funds?

Ethical investing involves holding investments with the potential to maximise returns and protect a charity's core values at the same time.

Find out about ethical investment, and whether it’s the right choice for your charity.

Every investment carries risks, even a simple cash deposit, but it's important to understand and manage them. You need to think about everything from how comfortable you are that the total value of your charity's assets might fluctuate to how easily you need to access your money.

Our article on balancing risk and returns includes some things to think about when calculating your appetite for risk.